President Donald Trump has chosen Kevin Warsh, a former bank executive and central bank governor, to lead the Federal Reserve.
Within minutes of the nomination, reactions started pouring in from prominent economists and business leaders.
Here are what some of the leading voices in economics and business are saying.
Mohamed El-Erian
The renowned economist Mohamed El-Erian congratulated Warsh on his nomination to lead the Fed.
“Having observed and interacted with Kevin during his prior tenure as Fed Governor, in academia, and as a fellow member of the Group of Thirty (G-30), I believe he brings a strong mix of deep expertise, broad experience, and sharp communication skills,” El-Erian wrote in a post on X.
“His commitment to reforming and modernizing the Fed bodes well for enhancing policy effectiveness and protecting the institution’s political independence.”
Earlier in January, El-Erian wrote on X that the Department of Justice probe into Jerome Powell could undermine the “credibility of a Fed whose public standing is already fragile.”
Jason Furman
Jason Furman, a Harvard economist and former top economist to President Barack Obama, wrote on X that “Warsh is well above the bar on both substance and independence to be Chair of the Federal Reserve.”
“The Senate should ask tough questions about his independence & President Trump should reduce the threat to it. Hopefully that will make it clear Warsh should be confirmed,” he wrote.
“Warsh has a range of views that would not have led me to recommend a Democratic President nominate him as Federal Reserve Chair,” Furman added. “I would be thrilled if he ends up conducting himself over the next four years in a way that would make a President of any party want to reappoint him.”
Joseph Brusuelas
Joseph Brusuelas, principal and chief economist for RSM US LLP, said Warsh meets the bar to lead the Fed, but he should be questioned on central bank independence and reform, as well as on reducing the Fed’s balance sheet.
“Moreover, he should be challenged to how he would respond in a financial crisis given his public track record of focusing on inflation risk during a time of rising unemployment and deflation during the early portion of the Great Financial crisis,” Brusuelas wrote on X.
“Warsh has a range of views and track record that presents significant concerns about how he would proceed during a financial and economic crisis. I would not have recommended him but he is qualified for the job,” he added.
Robin Brooks
Robin Brooks, senior fellow at Brookings, said in an X post that Warsh “is a really good pick for Fed Chair and known as a hawk.”
He did, however, note the muted market reaction in the minutes after the announcement.
“But markets are asking themselves what was promised to get the nod, which is why the Dollar – after its huge decline in recent days – isn’t managing to rally on what should be good news,” said Brooks, who was also a managing director and chief economist at the Institute of International Finance.
Sonali Basak
Sonali Basak, the chief investment strategist for iCapital and a former Bloomberg anchor, wrote on X: “Between Bessent & Warsh, you have two proteges of Stanley Druckenmiller in the most powerful finance posts in government.”
Warsh is a partner of Stanley Druckenmiller, the billionaire investor, at Duquesne Family Office LLC.
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